(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)
4/14/2009 € USD/CAD € As noted on last week€™s Chart of the Day for USD/CAD (4/08/2009), this pair was on the verge of breaking down below a key uptrend support line with at least five prior touches. This support line extended from a swing low back in mid-October. Price did in fact breakdown below this line since last week, and currently appears to be targeting further support to the downside around the key 1.2000 support/resistance level. Currently entrenched in a short-term downtrend extending from the fourth test of the 1.3 region in March, price is showing a significant bearish bias. Any breakdown below 1.2000 should target further downside support around the 1.1760 price region. To the upside, the broken uptrend support line should now serve as resistance where it originally acted as support. Currently, this dynamic resistance resides around the 1.2300 region.
James Chen, CMT
Chief Technical Strategist
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